SWC Memo on Livable Wage and Saint Michael's College

TO: Michael New, Vice President of Human Resources
For Distribution to Members of the Saint Michael’s College Cabinet

CC: David Mindich and Mike Battig, Faculty Welfare Committee co-chairs

FROM: Saint Michael's College Staff Welfare Committee (SWC)

SUBJECT: Livable Wage and Saint Michael's College

DATE: March 20, 2007

During fiscal year 2007, the Staff Welfare Committee researched and conducted a series of meetings and discussions on livable wage and its implications for Saint Michael's College employees. The discussions centered on the current lowest starting wages for Saint Michael's employees, and how those wages compare to Vermont livable wage figures*.

While the 3% cost of living increase slated for FY2008 will help to off-set some of the increases in living expenses employees have absorbed, the wage floor at Saint Michael's College continues to be significantly below what has been determined to be a living wage in Vermont. Therefore, the Staff Welfare Committee recommends that, in addition to labor market conditions and job characteristics, the basic living needs of lower-paid employees become a stronger consideration in budgetary and wage considerations.

The Staff Welfare Committee is sympathetic to constraints on the College’s budget. As well, we acknowledge that our college administrators have taken steps in the past to proactively adjust wages at the lower end of the pay scale. Our committee also notes that increasing the wage floor necessitates adjustments to the wage scale (e.g. a “ripple effect” in the pay ranges and “compression”). Nevertheless, we believe that Saint Michael's College should, without implementing lay-offs, a reduction-in-force, or a reduction in employee benefits, make strategic choices to raise wages for low-income employees.

Our rationale for supporting an increase in the wage floor is founded in the difficult economic circumstances facing low-income Saint Michael's College families. As well, we are cognizant of Saint Michael's role in Vermont, in light of the Catholic faith and the continuing Edmundite tradition, to serve as a leader in social justice causes and to model high ethical standards.
We are deeply appreciative for your time and consideration in this matter. Should you have questions or need clarification, we are available to meet with members of the Cabinet at your convenience.

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* The livable wage (basic needs and taxes) is published by the State of Vermont Joint Fiscal Office. The Vermont Livable Wage Campaign uses the single person, no children hourly figure (using the average between the rural and urban figures) as a general working figure: $13.86 for 2007 (with employer-assisted health insurance).